Quoted from ASOA:
Industry standard is 1 and a half times earnings.
I know for me part of the confusion is the use of terms, which may not be consistent with accounting terminology and seems to vary from poster to poster. For example, is earnings gross revenue after split or is it EBITDA or earnings after ITDA or something else? I understand the $900 figure appears to be revenue after split but I find it interesting that the valuation of what is essentially a utility or REIT is based on revenue as opposed to a metric that is closer to the actual profit valuation of the locked in contracts. (In my opinion, a route is more like a utility or a REIT than a tech company. You have contracts to deliver a service for a given period at given margins. There is limited growth within the market (the two locations). Additional growth comes from market expansion, which is not substantially aided by the current market share. Beyond some potential 'back office' efficiency and expertise, you really don't have much advantage over someone else with three games they want to route). I know for me, I would need to know a lot more about the financials than just the gross revenue.
I do find the discussion interesting, even though I have ZERO interest in owning a route. I also applaud the OP for operating a route as it helps the health of the Pinball Industry overall. To me, it looks like lots of headaches and frustration for not much coin.